Capital Allowances

Are you making the most of capital allowances? Are you even sure exactly what they are? Sometimes the more complicated matters surrounding tax may seem easier to just ignore. Like the hassle will outweigh the benefit. By doing so, you might be paying thousands of pounds a year that you don't need to.

Capital allowances are sums that your business can claim back from corporate or income tax on its profits. These expenses can be claimed on capital expenditure. This is money spent on items that are deemed to have a lasting benefit to your business.

Not all types of capital expenditure will allow you to claim capital allowance, however. Only certain types of assets can be claimed on. Generally, the asset must be owned. Hired or rented items cannot be claimed on, though relief is available on payments.

Capital allowances are most commonly claimed on:

Vehicles

Computers, printers & other technology

Tools

Specialist machinery

Integral features

You can claim allowances on items that are used personally. As long as they are also used for business purposes. To do this, though, you'll need to work out proportionately how much of the item's usage comes from business. For example, if you work from home, you may be able to claim back a percentage of your utilities and other things.

Capital allowance sare also available on property purchases. It’s possible to claim for integral features and energy-efficient or water-saving assets. In order to benefit from tax relief when buying a commercial property, it’s necessary to get the owner to make claims for capital allowances.

As you can imagine, it can be quite confusing working out what exactly you can claim allowances on.

Sound like a lot to work out?

At MoynanSmith Accountants and Tax Advisers we know that tax returns are difficult enough. Never mind having to work out what exactly qualifies for capital allowance. That's why we'll meticulously go through your expenditure for you. As chartered tax advisers we know taxation inside out, so we'll make sure that you claim as much capital allowance as possible.